Prosecutors claim that a $36 million finders fee paid by Quellos to Krane for enrolling Saban in the fund's tax shelters actually was actually a kickback for a cut of the fees earned from enrolling a high-profile client. Krane served as Saban's longtime tax advisor, and the billionaire needed the lawyer's counsel after realizing $1.5 billion in capital gains from the sale of his stake in the Fox Family Channel to Walt Disney in 2001.

Saban was forced to pay $250 million in back taxes and penalties as a result of his enrollment in the tax shelter. Saban
testified before a Senate committee in 2006 that his lack of a formal education
prevented him from understanding that the shelter was illegal. The Senate later
issued a report raising questions about Quellos and tax evasion; federal prosecutors began
their investigation after the report was issued.

Saban then sued
Krane in Austria seeking to recoup the fee and Krane countersued his former
client in Los Angeles Superior Court.

The passport fraud charge tacked on against Krane stems from the tax case. Earlier this year, federal agents searching Krane's West Hollywood home found illegal narcotics and documents
relating to a passport application with Krane's photo identifying him as
"Christopher Thomas Sullivan."

Krane's lawyer for his suit against Saban, Michael Holtz
of Los Angeles entertainment litigation boutique Lavely & Singer, did not
respond to a request for comment about how Krane's criminal plea could possibly
affect his civil litigation. Krane faces up to five years in prison for the
two convictions on the passport fraud and tax evasion charges at his sentencing
in March 2010.